Specter of Detroit looms over Obama’s new PR campaign on economy

posted at 10:41 am on July 24, 2013 by Ed Morrissey

And that is largely Barack Obama’s own fault. Two years ago, on another of his short-lived pivots to the economy and jobs, Obama held up Motor City as an example of the comeback of the American economy after three-plus years of his policies, especially his stimulus programs and the bailout of GM and Chrysler. National Journal’s Major Garrett points out the similarities between Obama’s PR campaign in 2011 and now, with Detroit’s collapse as the backdrop:

But Obama’s 2011 speech described a Detroit that can only be described as a myth wrapped in a wish inside a dream.

“This is a city that’s been to heck and back,” Obama said. “And while there are still a lot of challenges here, I see a city that’s coming back.”

Obama referenced “tough choices” made to bail out GM and Fiat-Chrysler and also hailed the birth of a new wave of high-tech employment. “We said American workers could manufacture the best products in the world. So we invested in high-tech manufacturing and we invested in clean energy,” he said. “And right now, there’s an advanced-battery industry taking root here in Michigan that barely existed before.”

The biggest factory in this supposed new trend, Massachusetts-based A123 Systems, had plans to employ 5,900 workers nationwide to build lithium-ion batteries. In Detroit, A123 Systems never employed more than 1,000. The Energy Department awarded A123 Systems a $249 million grant to boost production. It filed forbankruptcy in 2012 and was still receiving DOE largesse. A judge approved the bankruptcy in 2013.

In other words, the Detroit-area advanced-battery industry Obama said “barely existed before” his 2011 speech now … barely exists.

Obama also saluted the White House decision to make Detroit one of its six pilot cities in the “Strong Cities, Strong Communities” program.

“We’re teaming up with everybody—mayors, local officials, you name it—boosting economic development, rebuilding your communities the best way,” Obama said. “This is a city where the great American industry has come back to life and the industries of tomorrow are taking root.”

The biggest accomplishment of this program in Detroit is the demolition of a public housing project. There are also hopes, diminished by the bankruptcy proceedings, of building a $100 million light-rail line. Other “accomplishments” include a “text my bus” system “to provide more reliable information on transportation schedules”—this in a city that has lost half its bus service since 2005 and where budget cuts have eliminated overnight service. The “Strong Cities, Strong Communities” program also envisions the possible development of a regional transportation authority for Detroit.

With public housing being demolished, a text system for late or nonexistent bus service, and a federally funded lithium-ion battery factory that never met its hyped employment plans and then fell into bankruptcy, does any of this sound like, as Obama said, the foundations of a “city where people, brave and bold, courageous and clever, are dreaming up ways to prove the skeptics wrong and write the next proud chapter in our history”?

“Vision.” “Plan.” “Changing the nature of the conversation.” Obama was laying down a marker; this was going to be a b-i-g speech. Mark it on your calendars.

And yet, during that same OFA fundraiser, Obama acknowledged that no matter how lofty his goals or his rhetoric, the fundamental realities of the politics of the economy were almost certain to remain unchanged. ”I’m excited about the speech, not because I think the speech is going to change any minds,” he said.

Truer words were never spoken.

In the latest Washington Post-ABC News poll, 45 percent of Americans approved of how Obama is handling economic issues while 49 percent disapproved. A year ago, 44 percent approved of Obama’s economic approach — a number statistically unchanged despite the fact that the president swept to a second term thanks, at least in part, to making the 2012 election a referendum on his economic priorities.

A look even further back suggest a remarkable stability in Obama’s numbers on the economy. In October 2010, just before Republicans won 63 House seats to reclaim the majority, 44 percent of Americans approved of Obama’s approach to the economy in Post-ABC polling. Go back a year before that — December 2009 — and Obama’s economic approval is 46 percent.

It won’t change minds because we’ve been doing the same thing for more than four years on economic policy. Obamanomics is nothing but short-term attempts to inject stimulus while ignoring the fundamentals of economic growth — lowering hiring costs, reducing regulation, encouraging capital investments by increasing potential rewards and minimizing risks. We’re doing the opposite across the board, in large part due to ObamaCare, Dodd-Frank, and higher tax bites on capital gains. Short-term stimulus didn’t work with Cash for Clunkers, it didn’t work in Detroit, and it’s not working anywhere else except in Washington DC.

Also, be sure to check out Ramirez’ terrific collection of his works: Everyone Has the Right to My Opinion, which covers the entire breadth of Ramirez’ career, and it gives fascinating look at political history. Read my review here, and watch my interviews with Ramirez here and here. And don’t forget to check out the entire Investors.com site, which has now incorporated all of the former IBD Editorials, while individual investors still exist.

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The speech will have all of his key phrases, “let me be clear”, “a plan”, “vision”, “middle class”, “for those who don’t agree with me” and plenty of “I, me and mine’s” mixed in; yet in the end it will be nothing more than these phrases strung together in a completely uninspired speech lacking any coherence or meaning.

Don’t know. I see comments about “what happened to RWM?” or such…must have been a dialogue in here somewhere…I didn’t see/read…

Her comments have been sparce and not the usual. I sure hope that she’s ok. Everyone needs a rest but I hope that her wit/brains will continue to fight the world. She is an inspiration, is indefatigable and gutsy, way gutsy. More are needed.

She is way more American than millions of today’s Americans. The world and America really don’t deserve her efforts but I want her in the fight anyway. Her style is unique and her spirit is what America should have in her leaders, alas. There aren’t any of them around, unfortunately.

in the end it will be nothing more than these phrases strung together in a completely uninspired speech lacking any coherence or meaning.

Tater Salad on July 24, 2013 at 10:51 AM

Well, that’s one of the big reason why this guy got elected, twice. Leftists love Obama speeches. It’s all they care about….Obama making them feel good about themselves. Reality? That’s an afterthought to Dem voters, evidently.

This is what we get for electing a president who knows nothing about private-sector economics–but still despises it.

He really is a joke. The country elected him because he’s black, and the country re-elected him because he’s black. So we’re stuck with this un-American economic terrorist for eight years and his aftermath for who knows how long.

“We said American workers could manufacture the best products in the world. So we invested in high-tech manufacturing and we invested in clean energy,” B. Hussein Obama

Meanwhile, back at the [former] White House, Hussein’s jack-booted thugs at the EPA (not to mention the rest of the alphabet agencies) have done everything they can to stifle innovation while shutting down as many “clean coal” fired plants they can.
It is also stunning that the only entrepreneurs who are attempting to rescue Detroit from its economic doldrums, are being called “racist” by the urbanite City Council.
Those who have stepped up are all Anglos:
Mike Ilitch (owner of the Red Wings and Tigers)
Roger Penske (the auto guru)
Dan Gilbert (owner/CEO of Quicken Loans)
Oh, and by the by, Gubmint Motots can’ even give away the Chevy Volt.
Someone needs a reality check – NOT a gubmint check.
~(Ä)~

Obama is the economic savior of Detroit. This is now a legal fact. You dishonor the American President’s commitment at your legal peril. It’s up to Obama how good a savior he is, but the job belongs to him.

Now that’s completely unfair. The royals feel our pain. They understand just how hard it is to fuel up the 747 for the annual family vacation. They too are aghast at just how much lobster and truffles cost these days.

But they are economizing. The estate at Martha’s Vineyard only has a half basketball court.

If only 0bama had a democra…socialist run HOR too all would be well. You see it really is anybody that does not agree with his economically illiterate policies that cause all of the results from 0′s economically illiterate policies.

Once you understand that and achieve total cognitive dissonance you’re good. Also qualifies you to work at any medi…propaganda outlet in the USA.

Barry needs to go golfing. It’s better for him and it’s sure as hell better for us.

trigon on July 24, 2013 at 11:32 AM

We haven’t seen pictures of the rat-eared mullato on the golf course lately. Wonder why? A little bit too “let them eat cake” as federal employees are furloughed, the economy sucks, and gas prices are spiking?

Wild packs of dogs are roaming Detroit now which gives me an idea. In honor of Obama’s pet rename Detroit ‘Botown’.

As for Obama’s economic speech: “ummm..let me be clear..hmmm…err..it goes without saying…uhhhh Republican interference with bipartisan progress–hemmmm…striving to overcome generic white persecution…ahhhhhh..and I cannot make it any plainer than that, folks!”

Libs/proggies like Obama always choke on the part “increasing potential rewards”. They know and acknowledge that in free-market capitalism, the only way the poor get richer is if the rich (risk-takers) get richer too, widening the income/wealth gap. If your fundamental underlying beliefs preclude allowing the rich to get richer, then stimulus/bailouts/handouts are the only alternative.

We have a public, if the polls are correct, that place more value on hollow adjectives, such as “trying” and no results.

This.

Forty years of a vastly deteriorating educational system creating a pathetically dumbed down electorate (and society as a whole), plus a willing and corrupt media, along with soccer awards for “trying”, and this is where we are – about a half step above a banana republic.

The estate at Martha’s Vineyard only has a half basketball court.
Happy Nomad on July 24, 2013 at 11:30 AM

That’s still way more than “Downtown” Freddie Brown needs. “Hey, 2 for 2 (hundred) today, not bad. All ready for the next Egg Roll shoot-around!” Wonder if VJ demanded the Secret Service sneak in an oversized hoop…

Idiots holding a nicely-printed banner urging someone, anyone, to screw the banks, and anyone else they can, into canceling Detroit’s debt. According the banner, bankruptcy is racist and anti-democratic.

And yet, during that same OFA fundraiser, Obama acknowledged that no matter how lofty his goals or his rhetoric, the fundamental realities of the politics of the economy were almost certain to remain unchanged. ”I’m excited about the speech, not because I think the speech is going to change any minds,” he said.

There are also hopes, diminished by the bankruptcy proceedings, of building a $100 million light-rail line.

What is it with Democrats and light rail? It’s like nirvana will be achieved some through infrastructure, and it must be as impractical as possible.

Fenris on July 24, 2013 at 11:18 AM

Actually, that’s comparatively reasonable. Here in CT, the State government (dominated by Democrats, natch) decided to spend $600 million of state taxpayer money on a “busway” (lane reserved for buses along I-84) from New Britain to Hartford, a distance of about 12 miles. That might save 15 minutes of travel time over sitting in traffic in rush hour, less the time to walk from the bus station to wherever a New Britain resident might work in Hartford. No idea on how many more people might ride the bus if this thing were built, but Connecticut has its 50-million-dollar miles.

Meanwhile, in another part of the state, commuters frequently spend an hour or more trying to get through Waterbury on I-84, which is three lanes in each direction through the city and the next 30 miles up to Hartford, except for two lanes in each direction over a 2-mile stretch just east of Waterbury, and the bottleneck causes massive traffic jams in both directions. No word on when Governor Dannel Malloy is planning to widen that stretch of I-84, which would probably cost MUCH less than the busway…

It’s one thing to be crazed enough to joust with a windmill, but to mount your horse backwards actually give the windmill the advantage.

Not only that, Obama outdoes Don Quixote by building more windmills to joust against (which might knock off a few thousand endangered birds, as well as John Kerry off his windsurfer), while thou shalt not build oil rigs next to thy windmills!!!

A year ago, 44 percent approved of Obama’s economic approach — a number statistically unchanged despite the fact that the president swept to a second term thanks, at least in part, to making the 2012 election a referendum on his economic priorities.

Go back a year before that — December 2009 — and Obama’s economic approval is 46 percent.